How China & the EPA might be behind an Alabama coal company laying off 370 workers

HOOVER, Ala. — Hoover-based Walter Energy has issued notices to its employees that it could be laying off 370 workers at mines in Alabama as coal prices have struggled for a variety of reasons. The layoffs would constitute approximately 20 percent of the company’s workforce near Brookwood.

Walter Energy has seen its revenues plummet during the last year as coal prices have dropped, Environmental Protection Agency regulations made burning coal more expensive, and the steel industry has wavered.

Walter Energy’s coal mines primarily produce metallurgical grade coal, or coal used to make steel.

“We are expecting these reductions to take effect if market conditions don’t improve,” said Bill Stanhouse, vice-president of community and government affairs for Walter Energy.

U.S. Senator Jeff Sessions (R-AL) has warned for years that such layoffs could be coming, in large part because of China’s illicit trade practices.

In a Yellowhammer op-ed posted last year, Sessions cited a study by the Economic Policy Institute, that found “surging imports of unfairly traded steel are threatening U.S. steel production, which supports more than a half million U.S. jobs across every state of the nation. The import surge has depressed domestic steel production and revenues, leading to sharp declines in net income in the U.S. steel industry over the past two years (2012–2013), layoffs for thousands of workers, and reduced wages for many more.”

“Last year the Senate formed a bipartisan Steel Caucus to deal with the deep challenges our domestic steel industry is facing,” Sessions wrote. “As co-chair of the Senate Steel Caucus, I believe we must confront illicit trade practices overseas that undercut our own workers and industries. One action that is producing increased dumping of foreign steel is directly attributed to actions by China.”

To deter China’s dumping of steel onto the U.S. market, the Department of Commerce announced it would levy tariffs on some steel products made in China and sold through Korean companies.

“Trade, like any contract, must work for both parties,” said Sessions, “yet, too often, our trading policies have allowed these abuses and currency manipulation which have enriched other countries while eroding our own industry. Our economic policies too often raise the cost of doing business in America while reducing the cost of imported subsidized goods into America. Our goal, for workers and companies alike, should be more production of goods here in the U.S.—producing a rising standard of living for our citizens. No country can survive without manufacturing. In addition, we must focus a strong effort to end currency manipulation by trading partners, which gives them a big trade advantage.”

Unless market conditions improve, layoffs will begin on or around July 15th.